Practice General Topics in Finance Questions and Answers

• A company has a P/V ratio of 20% and its break-even sales are ₹16 crore. What is the fixed cost of the company?
• In the study of business cycles, the point where the economy transitions from the Expansion phase to the Recession phase is known as the ________; conv...
• A negative supply shock, such as a sudden rise in oil prices, would cause the short-run Phillips curve to:
• Given the following economic indicators for a household sector in 2026 (in ₹ Crores): ·        Private Income: 8,500 ·        Corporat...
• A SEBI-registered portfolio manager is tracking several macroeconomic variables to predict a potential downturn in the Indian economy. Which of the followi...
• Which of the following is NOT considered a 'Quantitative' tool of monetary policy used by the RBI? 
• What is the minimum paid-up equity capital required to set up a Small Finance Bank (SFB) as per current RBI norms? 
• The 'Narasimham Committee' is most famously associated with which of the following? 
• In the context of Asset Reconstruction Companies (ARCs), what does 'SR' stand for? 
• What is the minimum threshold of debt for a bank to initiate recovery proceedings under the Recovery of Debts and Bankruptcy (DRT) Act? 
• The Capital Conservation Buffer (CCB) as per Basel III norms in India is set at: 
• Under the PM Jan Dhan Yojana (PMJDY), what is the maximum overdraft limit available to eligible account holders? 
• What does the 'C' in CKYCR stand for in the context of KYC? 
• As per RBI guidelines, 'High Risk' customers must have their KYC updated at least once every: 
• Which of the following is a 'Charge' created on Movable Assets where the possession remains with the borrower? 
• A 'Letter of Credit' (LC) is a payment mechanism used primarily in: 
• In credit monitoring, what does 'SMA-2' classification imply regarding a loan account? 
• The SARFAESI Act, 2002 is NOT applicable to which of the following? 
• Under the Insolvency and Bankruptcy Code (IBC), what is the maximum time limit (including extensions) for completing the Corporate Insolvency Resolution Pr...
• What is the minimum default amount required to initiate insolvency proceedings under the IBC as of the current 2024–2026 norms? 
• In a 'Pledge', what is the legal relationship between the Bank and the Borrower? 
• Which of the following is NOT a category under the MUDRA scheme? 
• For a loan to be classified under 'Agriculture - Infrastructure' category of PSL, the limit per borrower is: 
• What is the 'EEFC' account? 
• Which of the following is a component of 'Tier 2' Capital? 
• What is 'Countercyclical Capital Buffer' (CCyB)? 
• 'TReDS' is an electronic platform for facilitating the financing of: 
• 'Account Aggregator' (AA) framework in India is regulated by: 
• A 'Hybrid' instrument is one that: 
• What is the 'Base Rate' system replaced by for new loans since 2016? 
• 'Gearing Ratio' is another name for which of the following? 
• Consider the following statements regarding the Cash Reserve Ratio (CRR): 1. Banks earn interest on the CRR balances maintained with the RBI. 2. An increas...
• Regarding the SARFAESI Act, 2002, consider these statements: 1. It allows banks to auction properties without the intervention of a court. 2. It can be inv...
• Evaluate the statements on the Banking Ombudsman Scheme: 1. There is no fee for filing a complaint before the Ombudsman. 2. The Ombudsman can act as a medi...
• Consider the following regarding the DICGC: 1. It is a fully owned subsidiary of the RBI. 2. It insures both principal and interest up to ₹5 Lakh. 3. It ...
• Regarding 'Prompt Corrective Action' (PCA) framework: 1. PCA applies to both Public and Private sector banks. 2. It is triggered if the Net NPA of a bank e...
• Consider the following statements on Working Capital Assessment: 1. The Tandon Committee suggested the "Maximum Permissible Bank Finance" (MPBF) method. 2....
• Regarding the External Benchmark Lending Rate (EBLR) framework, consider the following statements: 1. Banks are free to choose any external benchmark, incl...
• Regarding 'Small Accounts' (Simplified KYC), consider the following statements: 1. The aggregate of all credits in a financial year should not exceed ₹1 ...
• In the context of 'Charges on Securities', consider these statements: 1. In a Pledge, the bank has the right to sell the goods without a court order after ...